If the state or a political subdivision subsidizes public transit fares for its employees, the state or political subdivision is prohibited from receiving any compensation for its employees' transit ridership use.

Adds a new article to Title 28 (Transportation) regulating "autonomous moter vehicles" (defined). A person who possesses a valid driver license may operate an autonomous motor vehicle and is deemed to be its operator if the person engages the autonomous technology. Autonomous motor vehicles registered in Arizona must continue to meet federal standards and regulations for a motor vehicle, including specified equipment. By April 1, 2015, the Department of Transportation is required to submit a report to the President of the Senate and the Speaker of the House of Representatives recommending additional legislative or regulatory action that may be required for the safe testing and operation of autonomous motor vehicles.

Various changes related to driver licenses and driver training schools. Applicants for driver training school instructor licenses are required to have a valid fingerprint clearance card. Training school license applicants whose license application is refused may request a hearing with the Department of Transportation within 30 days after service of notice of the refusal. The Dept is authorized to hold certain driver license related hearings by telephone or video conference. The Dept may issue nondomiciled commercial driver licenses to an individual domiciled in another state if that state is prohibited from issuing commercial driver licenses. The Dept is also authorized to issue a class A, B or C driver license with any restrictions the Dept determines are appropriate to ensure the safe operation of a commercial motor vehicle by the licensee. AS SIGNED BY GOVERNOR.

The State Transportation Board is authorized to issue parity bonds to refund or refinance any outstanding bonds if certain criteria are met. On a monthly basis, the Director of the Department of Transportation is required to deposit 1.6 percent of motor vehicle fuel tax monies in the State Lake Improvement Fund. Repeals statute requiring the Dept to conduct a survey to determine the taxes paid on fuel for watercraft in order to determine the amount put in the Fund. The maximum amount of the bond required of a motor fuel supplier is increased to $5 million, from $1 million. AS SIGNED BY GOVERNOR.

For the purpose of exempting motorized electric or gas powered bicycles or tricycles from certain vehicle regulations and driver license requirements, the definition of "motorized electric or gas powered bicycle or tricycle" is modified so that the helper motor has a power output of no more than 1,000 watts or 1.3 horsepower, instead of the motor having a maximum piston displacement of 48 cubic centimeters or less.

If vehicle liens, encumbrances or title retention documents are delivered to a registering officer or authorized third party provider within 30 calendar days, instead of 30 business days, after the date of execution, the constructive notice dates from the time of execution. The time stamp on vehicle liens, encumbrances or title retention documents administered by the registering officer or authorized third party provider, electronically or otherwise, is conclusive as to the time and date of delivery of the documents. AS SIGNED BY GOVERNOR.

The statutory life of the Arizona State Parks Board is extended 10 years to July 1, 2023. Retroactive to July 1, 2013. Also requires the Board to submit a report on the implementation of the recommendations of the Auditor General to the Joint Legislative Audit Committee by December 31, 2017. AS PASSED HOUSE.

A person who is required to equip their vehicle with an ignition interlock device (IID) due to driving under the influence is no longer permitted to operate a motor vehicle owned by an employer in specified conditions. A person unable to operate an IID can no longer be placed in a continuous alcohol monitoring program instead of equipping his/her vehicle with an IID. Any person who was in a continuous alcohol monitoring program before the effective date of this legislation may continue for the remainder of the time the person is in compliance with all applicable laws and is required to equip the person's vehicle with an IID. AS SIGNED BY GOVERNOR.

A surety is required to be relieved from liability on the appearance bond on which the defendant is released if the surety surrenders the defendant to the county sheriff on or before the day and time the defendant must appear in court, the defendant is in the county sheriff's custody on or before the day and time the defendant must appear in court and the surety provides an affidavit of surrender of the appearance bond to the sheriff, or the defendant is released or transferred to the custody of another government agency and the surety establishes that the surety did not know of the release or transfer and the defendant's failure to appear was a direct result of the release or transfer. If a surety is relieved of liability due to a release or transfer, the surety is required to return the premium and all collateral to the guarantors of the bond. AS SIGNED BY GOVERNOR.

The six-year statute of limitations for AHCCCS to file a collection action is tolled either after the administrative action is commenced and until the action's final resolution, including any legal challenge to the action, or while the state and the AHCCCS Administration did not know that a claim was false or fraudulent. Applies to any action in which a court has not entered a final judgment before the effective date of this legislation. AS SIGNED BY GOVERNOR.

Municipalities are prohibited from placing a photo enforcement system on a state highway unless the municipality provides proof to the Department of Transportation that the system is necessary for public safety and obtains a permit or enters into a contract with the Dept for use of a right-of-way. The Dept is required to publish on its website the specific information it needs to determine if the photo enforcement system is necessary for public safety, including operational speed studies and reports of motor vehicle accidents. The term of a permit or contract for use of a right-of-way cannot exceed three years. Before the renewal of a permit or contract, the municipality is required to submit information to the Dept to show the impact of the photo enforcement system. Does not apply to a photo enforcement system that exists on state highways on the effective date except when the permit or contract for the system expires or is renewed. AS SIGNED BY GOVERNOR.

State agencies and local authorities are prohibited from using a photo enforcement system to identify violators of traffic control devices and speed regulations. Statutes authorizing and regulating photo enforcement are repealed.

The repeal of the Underground Storage Tank (UST) tax and Assurance Account is extended two years to December 31, 2015, from December 31, 2013. After the statutorily required transfer of $60 million from the Underground Storage Tank (UST) Assurance Account to the Regulated Substances Fund, any additional monies must be deposited in the State Highway Fund. Releases of a regulated substance that are reported on or after July 1, 2006 at a site that is otherwise in compliance with state law and that could not have been reported before July 1, 2006 with the exercise of reasonable diligence are eligible for coverage for corrective action costs from the Account. If the Account does not have sufficient monies to pay for coverage of all releases, releases reported on or after July 1, 2006 are eligible in priority after releases reported before that date. Applications for reimbursement or direct payment of eligible costs from the UST Assurance Account must be filed by December 31, 2015, instead of June 30, 2010. If the Account does not have sufficient monies to pay all claims by the date of termination, any unpaid claims on that date are extinguished without regard to whether those claims were eligible for coverage. Monies in the Regulated Substance Fund are continuously appropriated. Establishes a 17-member UST Program Study Committee to consider needs and possible sources for future funding of the UST program and related issues. The Committee is required to submit a report of its findings and recommendations to the Governor and the Legislature by December 31, 2013. The Committee self-repeals March 1, 2014. AS SIGNED BY GOVERNOR.

A nonprofit corporation that is a lessee of land for airport or air terminal purposes may assume exclusive liability or hold harmless a municipality, county or the state for or defend against any legal or financial obligations that arise during the course and scope of its operation of airport facilities if the assumption is expressly designated in the lease. Applies to lease agreements entered into, renewed or amended after the effective date of this legislation and does not affect any pending litigation or the rights of the parties. AS PASSED SENATE.

Before the Department of Transportation may proceed with a highway construction project that exceeds a total cost of $15 million, the Joint Committee on Capital Review is required to review the project.